2021-11-09T13:55:12-07:00 2020-12-31 990 2020-01-01 610461919 EAST KENTUCKY POWER COOPERATIVE INC EAST 8597444812 PO Box 707 Winchester KY 403920707 Ann F Bridges Executive VP, CFO 8597444812 2021-08-25 1 11 0 AAL2 X 2020 2022-09-23 18:48:47Z Anthony Campbell PO Box 707 Winchester KY 403920707 801658673 0 X www.ekpc.com X 1941 KY East Kentucky Power Cooperative exists to serve its member-owned cooperatives by safely delivering reliable and affordable energy and related services. 16 16 787 0 0 0 0 0 860122513 787672472 25478110 12928991 1943763 1022233 887544386 801623696 88966 46279 0 0 98091252 99575667 0 0 0 745160131 673309842 843340349 772931788 44204037 28691908 3776381487 3509371557 3061009843 2765080097 715371644 744291460 East Kentucky Power Cooperative exists to serve its member-owned cooperatives by safely delivering reliable and affordable energy and related services. 0 0 East Kentucky Power Cooperative exists to serve its member-owned cooperatives by safely delivering reliable and affordable energy and related services. 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 278 0 1 787 1 0 0 0 0 0 753582428 44471827 0 1 0 X 16 16 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 X Ann F Bridges 8597444812 4775 Lexington Rd PO Box 707 Winchester KY 40392 X Michael A McNalley EVP, CFO (See Schedule J, Part III) 60 0 X 1919632 0 48652 Anthony S Campbell President and CEO 60 0 X 1027799 0 892247 David M Crews Sr. VP, Power Supply (See Schedule J, Part III) 50 0 X 1064805 0 43072 Don M Mosier EVP, Chief Operating Officer 55.00 0 X 669290 0 46354 David A Smart General Counsel 60 0 X 542654 0 43469 Craig A Johnson Sr. VP, Power Production 50 0 X 314285 0 204503 Denver York Sr. VP, Power Delivery & System Operations 45 0 X 276245 0 143810 Jerry B Purvis VP, Environmental Affairs 55 0 X 222407 0 129165 Denise Foster Cronin VP, Federal & RTO Regulatory Affairs 40 0 X 287344 0 28911 Thomas J Stachnik VP, Finance & Treasurer 50 0 X 254288 0 49141 Mary Jane Warner VP, Engineering & Construction 52 0 X 280178 0 12734 Roger R Cowden Deputy General Counsel 50 0 X 243395 0 38345 Joseph T VonDerHaar Plant Manager-Spurlock 55 0 X 219681 0 42703 Joseph Spalding Chairman 19 0 X X 38500 0 0 Charles A Ahrman Vice Chairman 13 0 X X 15100 0 15425 Oliver L Cornett Jr Treasurer 7.00 0 X X 30500 0 0 Jody Hughes Secretary 12 0 X X 28900 0 0 R Wayne Stratton Director 4 0 X 14125 0 14250 William P Shearer Director 6 0 X 28250 0 0 Timothy S Eldridge Director 6 0 X 27700 0 0 Ted Holbrook Director 6 0 X 27300 0 0 Greg Corbin Director 7 0 X 24050 0 0 Boris Haynes Director 5.00 0 X 24000 0 0 Danny Wallen Director 4 0 X 23650 0 0 Jimmy Longmire Director 5 0 X 23250 0 0 Elbert Hampton Director 4.00 0 X 22950 0 0 Randy Sexton Director 4 0 X 22700 0 0 Billy E Martin Director 3 0 X 21900 0 0 A L Rosenberger Director, term ended August 2020 4 0 X 11325 0 3600 Raymond E Thomas Director, effective August 2020 4 0 X 8800 0 0 7715003 0 1756381 305 0 1 0 W G Yates & Sons Construction Company PO Box 456 Philadelphia MS 39350 Construction 26217430 Burns & McDonnell Engineering Co Inc PO Box 411883 Kansas City MO 641411883 Design and Engineering 17409882 Siemens Energy Inc 4400 N Alafaya Trail Orlando FL 328262399 Construction 8219558 Triad Electric & Controls Inc 8183 W El Cajon Baton Rouge LA 70815 Construction 7609238 EvapTech Inc 8331 Nieman Road Lenexa KS 66214 Design and Engineering 6976671 90 0 0 0 0 0 0 0 0 Sales of Electricity- Member Cooperatives 221112 742351832 742351832 0 0 Sales of Electricity-Other Utilities 221112 29205675 29205675 0 0 Steam Sales- Member Cooperatives 221112 10440320 10440320 0 0 Transmission Service Revenue 221112 3618978 3618978 0 0 Other Power Sales Arrangements 221112 590777 590777 0 0 1464890 1464890 0 0 787672472 12735131 12735131 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 228837 0 34977 0 193860 193860 193860 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Gain from Sale of Allowances 221112 15 15 0 0 Capital Credits 221112 692205 692205 0 0 Miscellaneous Non-Operating Income 221112 330013 330013 0 0 0 0 0 0 1022233 801623696 801623696 0 0 46279 0 0 0 6959636 0 64460983 12342160 10344922 5467966 121447 1944075 305475 0 0 0 7678366 1481752 19266953 254644 0 13804413 2360460 0 12517 100928092 0 126963599 1480216 Fuel (Power Generation) 160792353 Purchased Power 109231979 Other Power Production/Power Supply Expense 89051846 Other Transmission and Distribution Expenses 20730424 16901231 772931788 0 0 0 11516597 20759978 121008501 105251487 85260459 88519531 2880647 1607055 131164525 124886040 149744230 124896419 4627405580 1641064929 2870399343 2986340651 39414334 39969032 363476205 15206907 1516646 1934457 3776381487 3509371557 124792707 92392520 171873465 2100000 2448025202 2306274510 185000000 245000000 131318469 119313067 3061009843 2765080097 X 0 0 0 0 715371644 744291460 715371644 744291460 3776381487 3509371557 X 28691908 -63308 0 0 0 291216 X 0 1 X 1 0 142811728 0 142811728 476372995 0 212155329 264217666 0 0 0 0 3997046999 0 1427671963 2569375036 11173858 0 1237637 9936221 2986340651 0 Deferred Credits 7306964 Accumulated Operating Provision and Other Liabilities 12004100 Asset Retirement Obligation 48851060 Accrued Post Retirement Benefit Obligation 51150943 119313067 X 801655949 0 0 0 32253 32253 801623696 0 0 0 801623696 772964041 0 0 0 32253 32253 772931788 0 0 0 772931788 Schedule D, Part X, Line 2 The Cooperative is exempt under Section 501(c)(12) of the Internal Revenue Code from federal income tax for any year in which 85% of its gross income is derived from members but is responsible for income taxes on certain unrelated business income. ASC Topic 740-10, Income Taxes, clarifies the accounting for uncertainty in income taxes and income recognized in the financial statements. This interpretation requires financial statement recognition of the impact of a tax position if a position is more likely than not of being sustained on audit, based on the technical merits of the position. Additionally, ASC Topic 740-10 provides guidance on measurement, recognition, classification, accounting in interim periods and disclosure requirements for uncertain tax positions. The Cooperative has determined that more than 85% of its gross income is derived from members and it meets the exemption status under Section 501(c)(12). Schedule D, Part XI, Line 2d A net periodic benefit interest credit and certain nonutility expenses were included in Other Nonoperating Revenue on the audited Statements of Revenue and Expenses and Comprehensive Margin. These amounts were included in functional expenses on the Form 990. Schedule D, Part XII, Line 2d A net periodic benefit interest credit and certain nonutility expenses were included in Other Nonoperating Revenue on the audited Statements of Revenue and Expenses and Comprehensive Margin. These amounts were included in functional expenses on the Form 990. 1 Commonwealth Fund for KET Inc 560 Cooper Drive Lexington KY 40502 611285473 20000 Donation for general support. 1 0 Schedule I, Part I, Line 2 East Kentucky Power Cooperative, Inc. does not issue grants. X 1 1 X X X X 0 1 0 Michael A McNalley EVP, CFO (See Schedule J, Part III) 516405 0 0 0 1403227 0 28500 0 25232 0 1973364 0 694343 0 Anthony S Campbell President and CEO 1017743 0 0 0 10056 0 875272 0 22055 0 1925126 0 0 David M Crews Sr. VP, Power Supply (See Schedule J, Part III) 302513 0 0 0 762292 0 28500 0 18834 0 1112139 0 328422 0 Don M Mosier EVP, Chief Operating Officer 523790 0 0 0 145500 0 28500 0 22934 0 720724 0 0 0 David A Smart General Counsel 415999 0 0 0 126655 0 28500 0 19643 0 590797 0 0 0 Craig A Johnson Sr. VP, Power Production 296032 0 0 0 18253 0 181887 0 26865 0 523037 0 0 0 Denver York Sr. VP, Power Delivery & System Operations 259613 0 0 0 16632 0 126598 0 21227 0 424070 0 0 0 Jerry B Purvis VP, Environmental Affairs 218401 0 0 0 4006 0 107509 0 25069 0 354985 0 0 0 Denise Foster Cronin VP, Federal & RTO Regulatory Affairs 223062 0 15000 0 49282 0 15365 0 16138 0 318847 0 0 0 Thomas J Stachnik VP, Finance & Treasurer 250532 0 0 0 3756 0 25738 0 27330 0 307356 0 0 0 Mary Jane Warner VP, Engineering & Construction 270555 0 0 0 9623 0 5050 0 11435 0 296663 0 0 0 Roger R Cowden Deputy General Counsel 233890 0 2000 0 7505 0 23376 0 18504 0 285275 0 0 0 Joseph T VonDerHaar Plant Manager-Spurlock 216719 0 750 0 2212 0 22079 0 24007 0 265767 0 0 0 Schedule J, Part I, Line 1a EKPC has a written employee travel and expense policy. Of all travel completed by listed persons in 2020, there was one first-class flight. The flight was for business purposes and accordingly, not included in employee taxable compensation. Listed person participating in the first class flight was a corporate officer. Schedule J, Part I, Line 3 The President and CEO's compensation is determined by the Board of Directors. The Board of Directors retain a consulting group to perform a comparability data assessment to benchmark the compensation of peer groups. There is a written employment contract. Schedule J, Part I, Line 4 The Cooperative provides a 457(f) Supplemental Executive Retirement Plan to certain executives of the organization. The plan is considered a defined contribution plan whereby annual contributions are made based upon a percentage of base salary. Participants become 100% vested and the account balance paid out upon attaining age 62 or if separation occurs due to involuntary termination without cause, disability, or death. Separation for any other reason before age 62 will result in participants forfeiting their benefits. The following payments were made related to the Plan in 2020: Michael A. McNalley received a 457(f) payout of $1,382,250 which is included in other reportable compensation on Schedule J, Part II, Column B(iii). As indicated on Schedule J, Part II, Column F, $694,343 of this payout amount was reported as deferred compensation on prior years' Form 990 filings. David M. Crews received a 457(f) payout of $742,454, which is included in other reportable compensation on Schedule J, Part II, Column B(iii). As indicated on Schedule J, Part II, Column F, $328,422 of this payout was reported as deferred compensation on prior years' Form 990 filings. Don M. Mosier and David A. Smart received 457(f) payments of $123,511 and $98,400, respectively. These amounts, which represent what would have been contributed to the plan if they had not attained age 62 in a previous year, are included in other reportable compensation on Schedule J, Part II, Column B(iii). Form 990, Part VI, Section A, Line 6 East Kentucky Power Cooperative, Inc., (EKPC) is a rural electric generation and transmission cooperative that provides wholesale electric power and related services to its 16 member rural electric distribution cooperatives. By virtue of their memberships, these member cooperatives own EKPC. Each member cooperative has a representative that serves on the Board of Directors of EKPC. Each member is also a tax-exempt organization. The members are Big Sandy RECC, Blue Grass Energy Cooperative, Clark Energy Cooperative, Cumberland Valley Electric, Farmers RECC, Fleming-Mason Energy, Grayson RECC, Inter-County Energy Cooperative, Jackson Energy Cooperative, Licking Valley RECC, Nolin RECC, Owen Electric Cooperative, Salt River Electric, Shelby Energy Cooperative, South Kentucky RECC and Taylor County RECC. Form 990, Part VI, Section A, Line 7a The organization does have members who may elect one or more members of the governing body as explained on Form 990, Part VI, Line 6. Form 990, Part VI, Section A, Line 7b The dissolution of the Cooperative, the merger or consolidation with any other corporation, or the sale, lease, exchange, transfer or other disposition of all or substantially all of the Cooperative's assets must be approved by a majority of the total members. Form 990, Part VI, Section B, Line 11b Per the Audit Committee Charter, the Audit Committee reviews the Form 990 to ensure compliance. A copy of the Form 990 is made available electronically to the full Board of Directors before it is filed. Form 990, Part VI, Section B, Line 12c Directors, key management, managers and employees involved in the procurement process annually sign a Conflict of Interest Compliance Statement stating whether they have any actual or potential personal relationships or business interests with any vendor with which the Cooperative does business. These individuals also affirm that they have a continuing responsibility to amend their statement. All compliance statements are reviewed by Internal Audit and any stated conflicts or potential conflicts are researched with the results provided to the Audit Committee. Form 990, Part VI, Section B, Line 15 The President and CEO's compensation is determined by the Board of Directors in executive session based upon the results of a comparability data assessment conducted by a consulting group retained by the Board. The Chairman of the Board provides documentation of any pay change to General Counsel. General Counsel retains this documentation, along with the comparability study on file. For other officers and key employees of the organization, each job description is ranked and assigned a salary grade. The midpoints for each salary grade are then determined using external benchmarking data. Minimums and maximums are calculated and the compensation model is updated annually. Form 990, Part VI, Section C, Line 19 The organization's annual report, including financial statements, is posted on its own website. The conflict of interest policy is made available to vendors. The governing documents, Articles of Incorporation, Bylaws, Board and Administrative Policies are available via the Intranet to employees and Directors, but not to the public. Form 990, Part VII, Section A, Line 1a The compensation structure for Directors is based upon the results of a director compensation comparability study and the need to attract and retain directors with skills needed to govern a G&T utility. The structure recognizes and compensates directors for the considerable time and effort spent outside of meetings fulfilling their oversight and governance roles. A questionnaire was distributed to each current and former officer, key employee and highest compensated employee. The questionnaire included name, title, date, hours per week and signature of each individual and contained relevant Form 990 instructions and definitions. Form 990, Part XI, Line 9 Other changes in net assets or fund balances of $291,216 is comprised of the actuarial gain or loss on the accumulated postretirement medical benefit obligation of $6,245,391 less capital credit retirements of 5,954,175